At the end of the year, equipment dealers are motivated to reduce their inventory and make room for new models. This often means running special promotions to help lower the total acquisition cost of new machines. The promotions usually begin in late fall and continue throughout December. This gives you ample time to assess your business needs and research promotional options. Some offers that may be available include:
Low interest rates
No payments due until spring
Little or no down payment
Low monthly payment leasing options
In addition to the opportunity to get a great deal on a new piece of equipment, buying at year-end can also have considerable tax advantages. Tax deductions can help reduce your company’s tax liability, which saves money you would otherwise have to pay to the Internal Revenue Service as income tax. For the dollars you spend to grow or improve your fleet, you receive some savings on your potential tax liability in the form of a deduction.
Additional savings may come from asset depreciation, which is how the value of your equipment fleet is managed from a tax perspective. Designed in part to promote reinvestment of operating cash back into your business, it can potentially reduce your taxable income for that year. In recent years, other tax incentives such as bonus depreciation have been put in place to allow for equipment purchases to receive additional depreciation in the first year.
For small businesses purchasing new machines, Section 179 of the tax code may offer additional incentives. Rather than just depreciate a new asset year-by-year, this deduction allows you to write off up to $25,000. This can save you more money by offering an even larger reduction of your income tax liability.
Please note: There are some limitations and considerations to be aware of regarding Section 179 and bonus depreciation. It is always best to consult your tax accountant prior to making a business decision based on these items.
Be Prepared for 2016
Investing in your fleet at the end of the year can help put returns earned over the previous 12 months to good use and position your company for success in 2016. This is a great time of year to assess which pieces in your fleet currently require or could potentially need significant repairs or replacement soon. This will help you decide whether you want to update your fleet at year-end or handle potential service or replacement costs down the road.
In addition, it’s a good idea to review your business’s current needs and anticipate what might be required in the near future. That might mean replacing older equipment with new machines that are a better fit for what’s coming next. By doing this, you are undoubtedly making an investment that will help you prepare for expanding business opportunities in the new year.
I am a Pre-Field Agriculture/Product Application Representative for Caterpillar. I recently graduated from North Carolina State University with a dual degree in Agriculture Business Management and Agriculture Science, concentrating in Leadership and Environmental Technologies. I focus primarily on the relationships between customers, dealers, and the product specialists for the Building Construction Products division. Growing up on a beef cattle farm, I have several years of machine operation experience and agricultural knowledge. Thomas Jefferson said it best in that, "Agriculture is our wisest pursuit, because it will in the end contribute most to real wealth, good morals, and happiness."
I’m a Compact Wheel Loader Product Application Specialist for Caterpillar in North America. I have 11 years of experience, including roles in the field as a dealer technical support representative, and as a distributor business model consultant. I graduated from North Carolina State University with a Mechanical Engineering Degree, and wanted a job where I didn't have to sit in front of a computer all day. This job allows me to get out and get my hands dirty, with the goal of providing solutions to customers’ machine needs.
I am a Marketing Communications Specialist for Caterpillar with over twelve years of experience marketing the Cat brand to customers in Latin and North America. My goal is to arm customers with the information needed to make well informed purchase decisions; to maximize the value of Cat machines by using an array of Cat Work Tool attachments; and to minimize the total cost of ownership by using Cat parts and Cat Dealer service.
I am an expert Operator and Application Specialist for Caterpillar concentrating on products used in the construction trades industry. I operate, evaluate and train on Cat machines and Work Tool Attachments worldwide. I have a Degree in Agricultural Engineering, Craftsman Certified and was named Apprentice of the Year 1981 at the University of East Anglia, UK.
I am the National Association Manager for Caterpillar and have responsibility for customer associations and partnerships in multiple industries for Caterpillar. I have 12 years of experience at Caterpillar, and have spent most of those years in the field with dealers and customers around North America. I have always had a passion for equipment and find myself fortunate to be able to work with dealers and customers almost every day.
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I have been with Caterpillar for more than eight years, working in various roles including a materials engineer, a filters product manager and my current position as a parts consultant. My job allows me the opportunity to work with Cat dealers and customers providing insight on how the use of quality filters and fluids results in better equipment performance and lower owning and operating costs.
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I am a Sales Support Manager for Cat Financial and have responsibility for ensuring that the right financial products are available to Cat customers who purchase, lease or rent to own. 8 of my 10 years with Caterpillar Financial have allowed customer and/or dealer interaction as part of my daily responsibilities including over 3.5 years as a Territory Manager. I take personal satisfaction in finding financial solutions that work for our customers and CAT dealers.
I’m a Telehandler Product Application Specialist for Caterpillar in North and South America. I have 13 years of experience, including roles in the field as a dealer service operations and technical support representative, and as a distributor business model consultant. My telehandler passion and focus is working with dealers and customers to maximize the versatility of the product through machine and operator training.
I am a Product and Application Specialist with over 35 years experience at Caterpillar. I focus on helping you to determine the best Cat machines, work tool attachments, and services for you to use in the building and general construction, landscaping, specialty trades, and agricultural industries.
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Jeff Brown is a marketing professional for Caterpillar Skid Steer, Multi Terrain and Compact Track Loaders. Over Jeff's 12 years in the industry, he has visited with and studied the needs of customers across landscaping, construction, and agriculture segments. Delivering innovative solutions that solve customer's problems is Jeff's main focus.
I am a North American Product and Application Specialist for Caterpillar. In this role, I have had the opportunity to represent Caterpillar at various trade shows and train customers on new Small Wheel Loader content. I graduated from Purdue University in 2001 with a Mechanical Engineering degree and have spent the past 15 years with Caterpillar in various engineering roles. Growing up in the Mid-West, I have always loved the cold and the unique activities winter enables. Unfortunately, I had to give those up when I moved to North Carolina. I don't care what people say, you never get used to a hot climate.
I am a Filter and Fluid Marketing Consultant with over 14 years experience working at Caterpillar. My focus is to ensure customers understand the importance of using superior filtration and lubrication products in their equipment.
I am a Sales Support Manager with over nine years of experience in a variety of roles with Caterpillar Financial Services Corporation. Throughout my career, I have had the opportunity to gain experience in matching financial products and tailoring funding strategies to the specific needs of customers. This includes more than three years as a Territory Manager in Seattle partnered with N C Machinery, an authorized Cat dealer covering the states of Washington and Alaska.
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